The company's Life Science Services (LSS) division already has 16 pharmaceutical Quality Control (QC) operations in North America, Europe and Asia and is hoping its latest facility will strengthen its position in the region.
Singapore is certainly an attractive destination, as rapid development in the biomedical sciences industry has propelled its manufacturing output by 9.8 per cent to $11bn (€9.2bn) in 2005.
The prime appeal of Singapore as a manufacturing base lies with its strong physical and regulatory infrastructure, its global connectivity and its skilled manpower base.
Many of the world's top pharma companies now have operations in Singapore including Novartis, which opened a $180m pharmaceutical production plant in 2005, and Pfizer, which started its first large-scale active pharmaceutical ingredient (API) manufacturing facility in Asia there in 2004, spending $350m.
This makes Singapore a strong base of services providers and vendors that support pharma manufacturers in Singapore, expected to become a $25bn industry by 2015.
SGS's new laboratory is located in Ayer Rajah Crescent, close to Biopolis, in the same premises as the firm's current Singaporean operations.
Constructed at a cost of $1m, the facility is staffed by nine chemists and microbiologists.
"The Singaporean QC laboratory will be a corner stone of our global strategy for the LSS group" said Helge Bastian, Executive Vice President at SGS's LSS.
"During the last years, Singapore became a major production hub for pharmaceuticals, biopharmaceuticals and medical devices."
The 450-square-metre facility will offer high quality testing capabilities in analytical chemistry, microbiological testing, method development and validation, as well as stability studies.
The laboratory was designed with the support and training of SGS's European and North American experts and its operations are fully compliant with good manufacturing practice (GMP) standards.
"Many of our clients in Europe and North America have established manufacturing capabilities there. As their partner, it was a clear decision to expand our network and set up this state-of-the art laboratory," said Bastian.
"Additionally, we believe the lab can provide services to the vibrant biotechnology community in Singapore, offering testing capabilities and regulatory knowledge that smaller companies might lack."
SGS is predicting a 10 per cent annual growth for its Singapore operations.